As the government of Guam takes steps to address a revenue shortfall for the coming fiscal year, lawmakers on Friday questioned Department of Revenue and Taxation officials about potentially lost revenue, including income taxes paid by military personnel and other federal employees.

Sen. Mike San Nicolas, during an oversight hearing for Rev and Tax, said the agency needs to do a better job of tracking the island's federal Section 30 reimbursements, which are taxes from federal workers.

“Rev and Tax is doing its share, doing its part, to bring in the money," agency Deputy Director Marie Benito told senators.

Rev and Tax Director John Camacho and Benito told senators Rev and Tax needs more resources, including help so it can implement a law that requires a tax stamp to be placed on tobacco products. Camacho said draft rules and regulations have been written, and there are proposed designs for the stamp, but Rev and Tax needs resources to implement.

Benito said Rev and Tax's recommendation is to outsource the placing of the tobacco stamps.

She said Rev and Tax also would like the ability to hire a third-party collection agency to collect some delinquent taxes on contingency basis.

San Nicolas said Rev and Tax failed to comply with at least four laws passed since 2017, including Public Law 34-53, which requires compilation of air transportation taxes paid by residents of Guam since the 1970s, and to reconcile that data with Section 30 reimbursements attributable to air transportation taxes.

The senator said he believes these taxes, which are now about $18 per plane ticket, never were remitted to the U.S. Treasury and may have instead been given to FAA.

"This is a very significant Section 30 opportunity," San Nicolas said.

Speaker Benjamin Cruz and San Agustin also asked Camacho how much in penalties and interest Rev and Tax lost as a result of implementing the tax amnesty program.

As of Aug. 14, about $26.27 million of what is expected to be $35.28 million in tax amnesty proceeds had already been collected.

Benito asked lawmakers about the agency's budget for next fiscal year, noting that the budget bill restricts the ability of Rev and Tax to extend the employment of limited term employees.

She said most of the limited term employees at Rev and Tax are employed at the driver's license division, and she asked if it could extend their employment.

“Otherwise, we’re going to have to close down the driver’s license satellite," she said of the office that was opened at the Agana Shopping Center to speed the issuance of licenses.

San Agustin said Gov. Eddie Calvo has not yet signed the budget bill, so lawmakers can't amend it until it becomes law.